Paxos Labs Launches PAXGy Token Backed by PAX Gold Leasing

Paxos Labs has launched PAXGy, a new token that allows holders to earn returns on their gold reserves through leasing. The token is built on top of PAX Gold and is designed to increase the amount of PAXG that can be redeemed as its reserves earn returns from gold leasing.

Holders can deposit PAXG or swap accepted stablecoins to receive PAXGy, which gives them access to a lending strategy that earns returns in ounces of gold. The value of each PAXGy rises in PAXG terms as the borrowers pay to lease the metal, allowing holders to redeem their PAXGy for PAXG at a rate determined by the exchange.

Paxos Labs has partnered with OKX and X Layer to offer PAXGy through their Gold Earn and X Layer platforms. The company says that this structure gives holders a way to seek returns measured in ounces of gold, rather than dollars, making it distinct from simply holding PAXG.